Apple’s stock has surged 18.1% in the last six months, outperforming the Computer and Technology sector. Strong iPhone 17 sales, accounting for 59.3% of first-quarter fiscal 2026 net sales, have been a key driver. The company’s expanding AI features and collaboration with Alphabet are expected to boost growth. Services segment is also thriving, with record revenue in various areas.

Apple’s collaboration with Alphabet is set to enhance its AI capabilities, driving the Services business. Despite past challenges in timing and execution, Apple’s partnership with Google models will improve its offerings. The company expects strong adoption of Apple Intelligence among developers, bolstering app demand.

Apple’s Services sector is thriving, with record revenues in advertising, music, payment services, and cloud services. The segment benefits from an expanding games portfolio and the popularity of Apple TV+. New features are driving user engagement and growth in various services like Apple Pay and Apple Fitness+.

Analysts are optimistic about Apple’s fiscal 2026 earnings, expecting 12.7% growth from fiscal 2025. Revenue estimates for fiscal 2026 are also strong, indicating a 10.8% increase from the previous fiscal year. Despite a premium valuation, Apple’s prospects look promising, supported by its strong iPhone and Services business.

Read more at Nasdaq: Strong iPhone Sales Drive Apple Up 18% in 6 Months: Buy the Stock?